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Brazilian tech firm re-enters nation’s wind market

WEG attempts to return to Brazil’s wind components sector after big wind companies face red light

WEG could get better opportunities to penetrate the nation’s wind components market

A Brazilian engineering giant will return to the wind market after its overseas competitors were pushed out of the market for failing to comply with local manufacturing regulations. Jaraguá do Sul’s WEG decided to leave the nation’s wind equipment market in May as component prices plummeted due to competition.

WEG reconsidered its position after the Brazilian Development Bank (BNDES) ceased giving loans to overseas wind turbines developers due to failing to follow sourcing rules.

Several big wind companies, including Danish firm Vestas and Clipper Windpower in the US, had their loans suspended by BNDES as it undertook checks to verify the companies were complying with sourcing 40 per cent of their components from Brazil.

WEG established a joint venture with Spanish firm M. Torres Olvega Industrial for manufacturing wind turbines in March 2011, but since then withdrew plans to participate in the wind components market.

Last month BNDES halted loans for Indian firm Suzlon which agreed to build a wind components factory in Brazil.